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| Metals Manufacturer – Sales and Marketing Effectiveness
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Context / Scope of project
Our client was a large zinc and lead producer facing an oversupplied market with declining prices. PIP worked on all levers of the business but one of the key challenges was to sell the extra 20-30% throughput from debottlenecking and raise premiums for the product. Using a simple framework, the team focused on the “need for speed” and driving quick sales improvement through the organization.
Client achieved: (completed in 6 months)
- 20-25% sales volume growth across product lines
- 16% increase in pricing of bulk product vs. market and 19% increase in pricing of premium alloy vs. market
- $39 million in profit improvement from implemented improvement ideas
- 60% reduction in debtor days (average number of days to receive payment from customers)
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What we did:
A joint PIP/client team undertook the following:
- Review of industrial marketing: revised segments; reviewed competitor products pricing and economics; and assessed the relative value of competitor products and offerings to customers
- Redesign of sales approaches: aligned sales approach with segment needs and profitability; and identified contract renewal points, new projects and other buying triggers
- Retraining of sales force: training in “pocket pricing” and sources of margin leakage
- Generation of improvement ideas: through a series of workshops, the sales team generated improvement ideas with associated economic values and risks; and prioritised these opportunities by value and ease of implementation
- Introduction of KPIs: to drive new behaviours, introduced a set of controllable and measurable KPIs aligned across sales, marketing and customer service
- Development of information tools: developed a margin model to provide feedback to each sales person; and created other tools to make key information readily accessible
- Implementation of reviews: set up regular reviews throughout the sales organisation
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